The world is confronted with the twin crises of fossil fuel depletion and environmental degradation. The indiscriminate extraction and consumption of fossil fuels have led to a reduction in petroleum reserves. Alternative fuels, energy conservation and management, energy efficiency and environmental protection have become important in recent years. The increasing import bill has necessitated the search for liquid fuels as an alternative to diesel, which is being used in large quantities in transport, agriculture, industrial, commercial and domestic sectors. Biodiesel obtained from vegetable oils has been considered a promising option.In this paper, an attempt has been made to review the work done on biodiesel production and utilization, resources available, process(es) developed/being developed, performance in existing engines, environmental considerations, the economic aspect, and advantages in and barriers to the use of biodiesel.